Firm Performance and Foreign Ownership in Africa: Evidence from Zimbabwe, Ghana and Kenya
نویسندگان
چکیده
This paper examines the effect of foreign ownership on value added of firms in sub-Saharan Africa, using firm-level data from the Regional Program on Enterprise Development at the World Bank. The econometric analysis shows that foreign ownership has a significant effect on value added only when it exceeds a majority share. The results for Africa are consistent with the existing literature on foreign investment which argues that majority ownership creates appropriate incentives and provides greater opportunity to raise firm-level value added.
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